Question

b) Compute the machine Hour Rate from the following data.
(5 Marks)
• Cost of machine Rs. 5,00,000
• Installation charges Rs. 50,000
• Estimated scrap value after the expiry of its life (15 years) Rs. 25,000
• Rent and rates for the shop per month Rs.1,000
General Lighting for the shop per month Rs. 1,500
Insurance premium for the machine per annum Rs. 4,800
Repairs and maintenance expenses per month Rs. 5,000
Power consumption 10 units per hour
Rate of power 100 units Rs. 100
Estimated working hours per annum 2,200 (this includes setting up time of 200
hours)
Shop supervisor's salary per month Rs. 3,000
The machine occupies 1/4 of the area of the shop. The supervisor is expected to
devote 1/5" of his time for supervising the machine.​

Answer 1

Answer:

b) Compute the machine Hour Rate from the following data.

(5 Marks)

• Cost of machine Rs. 5,00,000

• Installation charges Rs. 50,000

• Estimated scrap value after the expiry of its life (15 years) Rs. 25,000

• Rent and rates for the shop per month Rs.1,000

General Lighting for the shop per month Rs. 1,500

Insurance premium for the machine per annum Rs. 4,800

Repairs and maintenance expenses per month Rs. 5,000

Power consumption 10 units per hour

Rate of power 100 units Rs. 100

Estimated working hours per annum 2,200 (this includes setting up time of 200

hours)

Shop supervisor's salary per month Rs. 3,000

The machine occupies 1/4 of the area of the shop. The supervisor is expected to

devote 1/5" of his time for supervising the machine.